2/2 © Reuters. A pump inside an IPC oil field. Outside Sodron, France, on February 6, 2023. Photograph: Pascal Rossignol/Reuters. 2/2
(Reuters) – It stabilized in early trading on Tuesday after declining in the previous session, as markets balanced continued tension in the Middle East on the one hand, and demand concerns and increased OPEC supplies on the other hand.
Brent crude futures rose 18 cents, or 0.2 percent, to 76.30 per barrel by 0122 GMT, while US West Texas Intermediate crude futures rose six cents, or 0.1 percent, to $70.83 per barrel.
Brent fell more than three percent and US crude fell four percent on Monday due to sharp price cuts by Saudi Arabia, the largest oil exporter, and an increase in OPEC production.
However, concerns remain about the Gaza war. The Israeli military said its fight against Hamas would continue until 2024, raising market concerns that the conflict could develop into a regional crisis that could disrupt oil supplies in the Middle East.
US Secretary of State Antony Blinken arrived in Tel Aviv late on Monday to brief Israeli officials on his two-day talks with Arab leaders on ending the war.
But a Reuters survey on Friday found that OPEC oil production rose in December, as increases in Angola, Iraq and Nigeria offset ongoing cuts by and other members of the broader OPEC+ alliance.
The increased supply also prompted Saudi Arabia to reduce the official selling price of its leading Arab Light crude to Asia in February to the lowest level in 27 months.
The market awaits US inventory data from the American Petroleum Institute later on Tuesday.
(Prepared by Ali Khafaji for the Arabic Bulletin)
2024-01-09 02:14:00
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